Military families often face a great deal of stress from a financial standpoint, because military personnel aren’t paid high wages. However, when people search for personal finance tips for military families, a great deal of the tips focus on the immediate finances. This is important, and if a person’s immediate finances are in shambles, these tips need to be taken seriously. However, there is another aspect managing money and this has to do with future financial planning.
Many people know that the military pays for a college education for military personnel. This is a popular program known as the G.I. Bill. However, what many people don’t realize is that military servicemen and women who have access to funds via the G.I. Bill can also transfer those funds to their spouse or their children. In some cases, they can transfer the entire amount. In other situations, what remains unused after they have finished school can then be transferred to their spouse or their children for private school or for a college education.
Another benefit that can be extremely helpful to military families is life insurance. Military personnel have the option of purchasing life insurance at a reduced cost. This can be extremely beneficial if a spouse is killed in the line of duty. These affordable insurance plans offer a family a respectable death benefit, which can help the family to be financially secure as they move on with their lives.
In addition to life insurance, from a saving standpoint, military servicemen and women have access to quality investments. For military personnel that are being deployed, the Savings Deposit Program allows each member to deposit up to $10,000 into a savings account and earn 10% per year. This percentage continues up to three months after they return home from their deployment.
While there are important tips that can help people with their immediate finances, there are also many avenues people have to plan for their future. Whether it’s paying for the education of a child or spouse, a savings account with tremendous returns on investment or affordable life insurance, there are many financial tips that can help a military family both now and for the future.